Futures Up; Deckers on the Rise, GameStop Tumbles After Earnings

By Sam Mamudi

Futures for the leading stock indexes are up, ahead of the quarter’s final day of trading.

On the rise are shares of Deckers Outdoor (DECK), the maker of Ugg shoes. The stock is up more than 5% after its price target was raised to $100 from $65 at Jefferies, according to Fly on the Wall.

Jefferies expects prices of sheepskin, Deckers Outdoor’s most significant raw material, to decline in 2013 following an 80% increase the past two years. The firm estimates the price drop to add around 35c-40c to Deckers’ earnings this year. Jefferies views Deckers Outdoor as the best risk/reward play in retail and keeps a Buy rating on the stock with an increased price target of $100.

Shares of video game retailer GameStop (GME) are heading in the other direction, falling more than 6% after its quarterly earnings, announced this morning, showed a 4.6% fall in same-store sales in the period and a lower-than-expected full-year outlook.

GameStop’s fourth-quarter results showed profit of $2.16 share and sales of $3.56 billion, both ahead of consensus analyst forecasts of $2.08 a share and $3.46 billion, according to FactSet. But GameStop also said full-year 2013 profit would be between $2.75 and $3.15 a share, well below the average estimate of $3.38 a share, and the retailer foresees total sales this year to be between flat and an 8% decline.

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